WTF is Ethereum?
Ethereum is behind many buzzwords like:
• DeFi
• NFTs
• DAOs
• Web 3.0, and much more.
Let's break it down.
Ethereum 101: decentralized code 👇🧵
Ethereum is behind many buzzwords like:
• DeFi
• NFTs
• DAOs
• Web 3.0, and much more.
Let's break it down.
Ethereum 101: decentralized code 👇🧵
0. What is Ethereum Technology?
The easiest explanation is that:
@ethereum is a decentralized computer spread across the world that lets people build decentralized apps.
It was invented by @VitalikButerin with Smart Contracts at the core, and ether (ETH) is its Currency.
The easiest explanation is that:
@ethereum is a decentralized computer spread across the world that lets people build decentralized apps.
It was invented by @VitalikButerin with Smart Contracts at the core, and ether (ETH) is its Currency.
1. But why do we need Ethereum?
So:
1st we got Bitcoin emerging as a new form of digital money which would operate outside the control of governments.
Years after, people realized that the underlying technology of Bitcoin - the Blockchain - could be used for other purposes..⬇️
So:
1st we got Bitcoin emerging as a new form of digital money which would operate outside the control of governments.
Years after, people realized that the underlying technology of Bitcoin - the Blockchain - could be used for other purposes..⬇️
2. The birth of Ethereum
"And what about Ethereum?"
Ethereum proposed to use blockchain tech. not only as a decentralized payment network and store of value but also to store code.
This code would be used to tamper-proof decentralized financial contracts and other apps...⬇️
"And what about Ethereum?"
Ethereum proposed to use blockchain tech. not only as a decentralized payment network and store of value but also to store code.
This code would be used to tamper-proof decentralized financial contracts and other apps...⬇️
3. Ethereum's currency (ETH)
"But isn't Ethereum a currency too?"
Yes and no.
Ethereum apps and contracts are powered by ether, the Ethereum' digital currency (ETH).
Ether was intended to complement rather than compete with bitcoin ..⬇️
More here: ethereum.org/en/
"But isn't Ethereum a currency too?"
Yes and no.
Ethereum apps and contracts are powered by ether, the Ethereum' digital currency (ETH).
Ether was intended to complement rather than compete with bitcoin ..⬇️
More here: ethereum.org/en/
4. Bictoin vs Ethereum
Bitcoin: created as an alternative to national currencies, and aspires to be a medium of exchange and a store of value.
Ethereum: created to be the platform powering decentralized apps, and transactions can contain executable code - Smart Contracts...⬇️
Bitcoin: created as an alternative to national currencies, and aspires to be a medium of exchange and a store of value.
Ethereum: created to be the platform powering decentralized apps, and transactions can contain executable code - Smart Contracts...⬇️
5. BTC vs ETH
BTC and ETH are both digital currencies.
But: Ether (ETH) doesn't want to establish itself as an alternative monetary system,
Instead: pretends to facilitate and monetize the operation of the Ethereum network, smart contracts and decentralized apps (DAPPs)...⬇️
BTC and ETH are both digital currencies.
But: Ether (ETH) doesn't want to establish itself as an alternative monetary system,
Instead: pretends to facilitate and monetize the operation of the Ethereum network, smart contracts and decentralized apps (DAPPs)...⬇️
6. Use Cases
"Ok, so what can I do with Ethereum?"
Imagine I want to borrow $200k to pay for my MBA.
I go to my Bank and ask for the money
They make an analysis on my request and...⬇️
"Ok, so what can I do with Ethereum?"
Imagine I want to borrow $200k to pay for my MBA.
I go to my Bank and ask for the money
They make an analysis on my request and...⬇️
7. The problem
...the Bank decides they won't lend me the money.
They say I'm not worthy the risk.
"But it's an Harvard MBA!!"
"Still, sorry Sir."
"Damn, how can I do it?
Why not to simply borrow money from friends?"...⬇️
...the Bank decides they won't lend me the money.
They say I'm not worthy the risk.
"But it's an Harvard MBA!!"
"Still, sorry Sir."
"Damn, how can I do it?
Why not to simply borrow money from friends?"...⬇️
8. Framing the problem
So, my friends are spread across the world and are willing to loan me the money for a certain interest rate. They believe in me.
They are 200 people, and it's as easy as $1,000 each.
"Nice, everything's set, let's ask them.
But how?" ...⬇️
So, my friends are spread across the world and are willing to loan me the money for a certain interest rate. They believe in me.
They are 200 people, and it's as easy as $1,000 each.
"Nice, everything's set, let's ask them.
But how?" ...⬇️
9. The solution
And here comes Ethereum.
With Ethereum, you can solve this Use Case and get a loan from a group of 200 people for eg.
The conditions stay written on a Smart Contract, stored in the Blockchain and every month you'd pay accordingly.
"Have fun on your MBA 🤗❤️"
And here comes Ethereum.
With Ethereum, you can solve this Use Case and get a loan from a group of 200 people for eg.
The conditions stay written on a Smart Contract, stored in the Blockchain and every month you'd pay accordingly.
"Have fun on your MBA 🤗❤️"
10. Other Use Cases
• Loans
• Insurance
• Payments
• Security infrastructure
• Healthcare applications
And many many more.
Don't know what Smart Contracts are?
Read here 👇
• Loans
• Insurance
• Payments
• Security infrastructure
• Healthcare applications
And many many more.
Don't know what Smart Contracts are?
Read here 👇
https://twitter.com/hey_bernie/status/1463557039570001921
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Want to understand Web 3.0?
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I'm writing a thread like this every day until year-end.
Want them in your email? Then subscribe the newsletter 👇
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I write about:
• Creators ❤️ Web 3.0
Summary:
0. What is Ethereum Technology?
1. But why do we need Ethereum?
2. The birth of Ethereum
3. Ethereum's currency (ETH)
4. Bictoin vs Ethereum
5. BTC vs ETH
6. Use Cases
7. The problem
8. Framing the problem
9. The solution
10. Other Use Cases
0. What is Ethereum Technology?
1. But why do we need Ethereum?
2. The birth of Ethereum
3. Ethereum's currency (ETH)
4. Bictoin vs Ethereum
5. BTC vs ETH
6. Use Cases
7. The problem
8. Framing the problem
9. The solution
10. Other Use Cases
• • •
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